Natural wealth or growth trap? The economic effects of resource rents, financial inclusion, and green innovation

Natural resources (NRs) and their role in influencing economic growth have received a lot of concern in recent years. The poor performance by many nations endowed with NRs has spurred discussion on this topic. The present study seeks to investigate the effects of mineral resource rents, financial inclusion, environment-related technological innovations, globalization, and renewable electricity generation on the domestic income in nine OECD (Organization for Economic Cooperation and Development) countries between 1990 and 2020. The study enables the coefficients in the equation to differ according to country and time. We apply fixed-effect and random-effect equation models in the study to test the equation. The study finds that mineral resource rents and renewable electricity generation have negative effects on economic growth in the nine countries, while financial inclusion, environment-related technological innovations, and globalization have positive connections with the economic growth of the nine countries.